Marketing and Management of Innovations

ISSN (print) – 2218-4511 

ISSN (online) – 2227-6718

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Identifier in the register: R30-01179 Decision dated August 31, 2023, No. 759

The language of publication is English. 

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Oleksii Lyulyov

Sumy State University | Ukraine

Marketing Strategy as an Effective Tool for Government Procurement Management

Svitlana Smerichevska 1,*,   , Oleksii Postnikov 2,  

  1. Professor, Department of Logistics, National Aviation University, Ukraine
  2. Ivan Chernyakhovsky National Defense University of Ukraine, Ukraine

     * Corresponding author

DOI: https://doi.org/10.21272/mmi.2024.2-08

Pages: 100–111

Received: 20 March 2024

Revised: 09 June 2024

Accepted: 15 June 2024

Abstract

This article investigates theoretical and methodological approaches to developing a marketing strategy for public procurement management in the context of European integration processes and reform of the public procurement system in Ukraine. The necessity of implementing a marketing strategy as an effective tool to increase the efficiency and transparency of public procurement activities is substantiated under modern economic conditions. The conceptual foundations for the formation of a marketing strategy for public procurement management are defined. Its main goal is to build successful and long-term partnerships between public customers and supplier companies based on the rational use of budget funds and the development of effective competition. Priority functions of the marketing strategy are outlined: comprehensive marketing analysis of public customers’ needs; market research to find the most competitive suppliers; ensuring effective communication between all participants; and the implementation of effective marketing measures to increase transparency and the openness of procurement procedures. A universal step-by-step algorithm for the formation of a public procurement marketing strategy is developed, including the following: analysis of the current state and identification of deficiencies in the existing system; clear definition of targets, objectives and priority areas for reform; selection of optimal marketing tools; directly implement the strategy and continuously monitor the results. A comprehensive classification of the types of marketing strategies in public procurement by their target orientation is presented. To increase the validity and minimize risks in decision-making regarding supplier selection, an original mathematical model for the formation of competitive prices based on nonlinear programming methods is proposed. This model allows considering the interests of all participants in the procurement process: determining the optimal vector of prices for goods/services based on the utility functions and preferences of customers, their budget constraints, and the technological capabilities of potential suppliers. The versatility of the model lies in the possibility of its application for any number of participants and product groups. The implementation of an effective marketing strategy for public procurement management will contribute to the formation of a highly efficient, transparent and competitive public procurement system focused on the rational use of budget funds, the development of fair competition among suppliers, and the minimization of corruption risks in this area.

Keywords: marketing strategy; public procurement; budget funds; transparency; efficiency; modelling; competition; utility function; pricing.

How to Cite: Smerichevska, S., & Postnikov, O. (2024). Marketing Strategy as an Effective Tool for Government Procurement Management. Marketing and Management of Innovations, 15(2), 100–111. https://doi.org/10.21272/mmi.2024.2-08

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